GILROY
– With a day left before the new fiscal year begins, state
lawmakers have yet to fix a Medi-Cal funding shortfall that could
cost clinics in California more than $6 million a day.
GILROY – With a day left before the new fiscal year begins, state lawmakers have yet to fix a Medi-Cal funding shortfall that could cost clinics in California more than $6 million a day.
Because Medi-Cal coffers have been out of money for at least several days, say health care advocates, any provider using Medi-Cal may go uncompensated for care they’ve been providing through July 1. The shortage could bring “significant” financial losses to local medical centers, including one of Gilroy’s largest health care providers Saint Louise Regional Hospital.
“It’s going to be a financial drain,” hospital spokesperson Vivian Smith said. “We are a safety net for people here. We take anyone regardless of their ability to pay. That’s our mission.”
Sixteen percent of Saint Louise’s clientele uses Medi-Cal to pay for medical treatment. The Daughters of Charity hospital also has expansive emergency services including a heli-pad for patients flown in by helicopter.
“The emergency room impact is large because many patients with emergencies use Medi-Cal,” Smith said.
Smith said Saint Louise has not been, and will never be, turning patients away. Instead it will take any uncovered services as a financial loss for the year.
“We won’t jack up prices. We just hope this gets solved,” Smith said.
Health care advocates say 2002-03 is not the first time the state program has come up short financially. What is unprecedented is the legislature’s inability to pass a bill to bridge the money gap. Advocates are also frustrated the state has not been clearer regarding how vast that gap is.
“At this point we’re on pins and needles waiting for action,” said Elia Gallardo, a policy director for the California Primary Care Association. “We’re incredibly hopeful that at some point people are going to realize health services were provided in good faith and they should be reimbursed. But without a deficiency bill, we don’t get the money.”
If the so-called deficiency bill is passed, health care providers will receive retroactive payments for Medi-Cal services. However, Gallardo says waiting for late payments from the state could cause insurmountable cash flow problems, especially for smaller clinics.
Gallardo said if lawmakers cannot make good on the retroactive payments, CPCA may organize a class action lawsuit.
